Two million mis-sold payment protection cover

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The scale of mis-selling of the loan payment insurance is higher than previously thought, says Which?

Up to two million borrowers who have taken out loan protection insurance may have been mis-sold the policies and will never be able to claim on them, according to consumer research.

Which?, the consumer group, found that the likely number of people who had wasted money on the policies is much higher than previously estimated, representing around a third of policies that were sold before the end of 2006.

The findings come days before an expected crackdown by the Competition Commission on the way the policies are sold, following a two-year investigation by the Office of Fair Trading.